Dehority v. Nelson

56 Ind. 414
CourtIndiana Supreme Court
DecidedMay 15, 1877
StatusPublished
Cited by11 cases

This text of 56 Ind. 414 (Dehority v. Nelson) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dehority v. Nelson, 56 Ind. 414 (Ind. 1877).

Opinion

Hiblack, J.

The appellee was the plaintiff, and the appellants were the defendants, in the court below.

The complaint states, that, in 1869, the plaintiff and the defendants entered into a copartnership for the purpose of making the excavations and embankments on section two of the canal, then being built by the Anderson Hydraulic Company, and each of the parties to this suit was to contribute one equal third part to the performance and completion of said work, and share one equal third part of the profits or losses arising from said work and contract.

That said work has been completed and received by said company, and that, by the terms of said copartnership, the same had been dissolved. That the defendants did not contribute to said work, and that there, was an actual loss on the same to the amount of ten thousand dollars. That the defendants used of the gross proceeds of said work to their own private purposes, and converted a large amount, to wit, four thousand dollars, to their own use, and that the plaintiff was compelled to pay and did pay, out of his own private means, to complete said work, the sum of ten thousand dollars.

The plaintiff prayed that an account should be taken of said co-partnership, and that he should have judgment for five thousand dollars and other proper relief.

There was a second paragraph in the complaint, which claimed that the defendants were indebted to the plaintiff' in the sum of four thousand dollars, for money had and received of him, a bill of particulars of which was filed therewith, and that said amount was due and wholly unpaid; concluding with a demand for judgment for nine thousand dollars and other proper relief.

The defendant Pence demurred separately to the complaint, but his demurrer was overruled, and he excepted.

Before the cause was placed at issue, the second paragraph of the complaint was withdrawn.

Pence then answered separately in four paragraphs:

[416]*4161. The general denial.

2. That soon after the formation of said copartnership, he sold and transferred to the plaintiff and his co-defendant Dehority all his interest in said copartnership and the assets thereof, and that they had, in consideration of such sale and transfer, assumed to pay all the debts and liabilities of the firm.

3. The third paragraph substantially repeats the matters set out in the second paragraph, but in a little different form.

4. Payment.

The defendant Dehority answered, also, separately in three paragraphs:

1. In general denial.

2. That before the commencement of the suit he had paid all the liabilities of the partnership, amounting to the sum of three thousand dollars. That the copartnership was indebted to him in the further sum of eight thousand dollars, which he was willing to set off against any demands against him, with a demand for judgment for the excess.

3. That the plaintiff' and the said Pence were indebted to him, said Dehority, in the further sum of five thousand dollars for moneys expended by him on account of said copartnership, for which he demanded a set-off'and judgment.

The plaintiff replied in general denial of the second, third, and fourth paragraphs of the answer of Pence, and of the second and third paragraphs of Dchority’s answer.

The cause was submitted to the court for trial without a jury, and, being requested by Dehority to make a special finding, the court, after having heard the evidence, found substantially as follows:

That the plaintiff' and defendants, on or about the 18th day of June, 1869, entered into a copartnership for the purpose of constructing a portion of the Anderson Hydraulic Works; that they undertook and finally com[417]*417pleted their job of work on or about the 15th day of June, 1871. That the partnership business, while such work was being carried on, was conducted without any regular or systematic account of the receipts or expenditures. That in consequence the court found it impossible, from the testimony of any one or all of the parties, or from the testimony of any other witness or witnesses, to ascertaiu the actual cost of said work, but that such an approximation to the actual cost thereof had been made, as to enable the court to determine the substantial rights of the parties without any very great injustice to any one.

The court further found, that the plaintiff contributed, ill money, to the completion of said work, the sum of about,- and not less than, four thousand five, hundred dollars, That the defendant Dehority contributed, also, about, and not less than, four thousand five hundred dollars, in cash and labor, over and above any boarding he received out of the partnership assets; and that the defendant Pence contributed toward said work the sum of thirty-two dollars and fifty cents. . That the parties received, through and in the name of the defendant Dehority, from the Anderson Hydraulic Company, for work and labor performed under their contract with said company, for the completion of their portion of said work, the sum of fourteen thousand six hundred and twenty-nine dollars and eighty cents. That the amount so paid to the parties by said Hydraulic Company, together with the several amounts contributed by them respectively, as above stated, was all expended in the completion of said work, and that, out of the money so received by the parties, there was nothing left for distribution amongst them after the payment of their debts, but that the firm created by such copartnership were substantially free from debt and liability. That there was an actual loss in the business, for which said firm was organized, of the sum of nine thousand and thirty-two dollars and fifty cents.

[418]*418The court further found, that the defendant Dehority, by an agreement with his codefendant, Pence, contracted to pay off the subscription of the said Pence to said hydraulic company, in consideration that said Pence would allow him, said Dehority, all his share of the profits arising out of the said contract with said hydraulic company, but that the weight of evidence was to the effect, that the plaintiff was not a party to said agreement with said Pence, and never consented to any arrangement, whereby said Pence was released from his liability as a member of said firm; that, by virtue of an agreement between said Dehority and said Pence, a balance of five hundred and ninety-four dollars and eighty cents on the final order of the hydraulic company, in favor of said firm, went into the hands of said Pence, and was received by him, and accounted for to said Dehority by said Pence, in an individual business transaction between them, and that said Pence has in no wise accounted to said firm for any portion of said balance on said order; that, by the terms of the original agreement between the members of said firm, each member was to bear an equal part in the loss on said contract, above stated, which,‘being appoi’tioned between them, requires each member to lose the sum of three thousand and ten dollars and eighty-three cents; that the plaintiff had already contributed to said loss the sum of four thousand five hundred dollars, from which deduct his share of the loss, to wit, three thousand and ten dollars and eighty-three cents, makes the sum of one thousand four hundred and eighty-nine dollars and seventeen cents more than his pro rata

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Bluebook (online)
56 Ind. 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dehority-v-nelson-ind-1877.